The crypto market has been on a consistent decline, with Bitcoin’s price dropping to less than $58k. However, on July 3rd, the Hong Kong Spot Bitcoin ETF recorded a massive inflow of $23 million, increasing its total net assets. Below, we will provide a comprehensive review of Hong Kong Bitcoin ETFs, the recent inflow, and its impact on Bitcoin’s price.
Introducing Hong Kong Spot Bitcoin ETF
The Hong Kong Spot Bitcoin ETF started trading on 30 April 2024, about three months after the United States gave the green light for the trading of BTC ETFs. The pioneer spot Bitcoin ETFs include six funds issued by three managers: Bosera Funds, China Asset Management (Hong Kong) Limited, and Harvest Global Investments. However, there was a unique difference between the approval of the Hong Kong ETF and that of the United States.
Each organization issuing a spot Bitcoin ETF also provided a spot ether ETF, and they could both be traded in Hong Kong and US dollars. Moreover, the ChinaAMC (HK) also allowed trading in the Chinese yuan. As reported by the Economic Times, CCData, a digital assets analysis firm, said that the Hong Kong Spot Bitcoin ETF won’t attract the same inflow as those of the US. However, it could help other countries around the world to approve of ETFs.
Hong Kong Spot Bitcoin ETF Total Net Assets Increases to a Massive $236 Million
According to data from SosoValue, the total net assets among Hong Kong Spot Bitcoin ETFs increased to a massive $236 million. This is shortly after the marks recorded a $23 million inflow as of 3rd July 2024. Furthermore, the total amount of Bitcoins recorded within that same day was 414.78 BTC. Apparently, on the 28th of June, the total net asset was standing at $212 million, while it grew to around $216.7 million on the 2nd of July. Thus, the latest increase to $236 million means a $20 million addition.
More details show that Bosera & Hashkey was the ETF provider with the only inflow of 414.78 BTC. Other providers, such as China AMC and Harvest, had a daily inflow of zero BTC. The latest inflow brings the total asset under Bosera & Hash key to $93.7 million, while China AMC remains the highest at $97.18 million and harvest at $45.15 million.
Bitcoin Price Decreases Massively Despite Hong Kong Inflows
It seems the Bitcoin ETF inflows in Hong Kong are having little or no effect on the price of Bitcoin, with the apex cryptocurrency dropping to less than $58k. According to data from CoinMarketCap, Bitcoin is currently at $57.7k at the time of writing, with a daily decrease of more than 6%. Apparently, there’s been a consistent decline in the weekly, monthly, and 3 months data of Bitcoin.
Conclusion
Hong Kong Spot Bitcoin ETF experienced massive inflows on the 3rd of July, bringing the total worth of assets in the market to over $236 million. There was an inflow of over 414 BTC worth around $23 million, and Bosera & Hashkey had all the inflow to its name. However, it seems this didn’t have any effect on Bitcoin, with the price dropping to less than $58k on 4th July. Bitcoin price decline has become more worrying for traders as there’s been no growth for the past 3 months.
Cover Image from Microsoft Designer
The information provided in this article is for informational purposes only and should not be considered financial advice. The article does not offer sufficient information to make investment decisions, nor does it constitute an offer, recommendation, or solicitation to buy or sell any financial instrument. The content is opinion of the author and does not reflect any view or suggestion or any kind of advise from cryptonewsbytes.com. The author declares he does not hold any of the above mentioned tokens or received any incentive from the company.
